In: Accounting
Lott Company uses a job order cost system and applies overhead
to production on the basis...
Lott Company uses a job order cost system and applies overhead
to production on the basis of direct labor costs. On January 1,
2017, Job No. 50 was the only job in process. The costs incurred
prior to January 1 on this job were as follows: direct materials $
22,400 , direct labor $ 13,440 , and manufacturing overhead $
17,920 . As of January 1, Job No. 49 had been completed at a cost
of $ 100,800 and was part of finished goods inventory. There was a
$ 16,800 balance in the Raw Materials Inventory account. During the
month of January, Lott Company began production on Jobs 51 and 52,
and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on
account during the month for $ 136,640 and $ 176,960 ,
respectively. The following additional events occurred during the
month. 1. Purchased additional raw materials of $ 100,800 on
account. 2. Incurred factory labor costs of $ 78,400 . Of this
amount $ 17,920 related to employer payroll taxes. 3. Incurred
manufacturing overhead costs as follows: indirect materials $
19,040 ; indirect labor $ 22,400 ; depreciation expense on
equipment $ 13,440 ; and various other manufacturing overhead costs
on account $ 17,920 . 4. Assigned direct materials and direct labor
to jobs as follows. Job No. Direct Materials Direct Labor 50 $
11,200 $ 5,600 51 43,680 28,000 52 33,600 22,400 Calculate the
predetermined overhead rate for 2017, assuming Lott Company
estimates total manufacturing overhead costs of $940,800, direct
labor costs of $784,000, and direct labor hours of 22,400 for the
year. (Round answer to the nearest whole percent, e.g. 25%.)
Predetermined overhead rate % Open job cost sheets for Jobs 50, 51,
and 52. Enter the January 1 balances on the job cost sheet for Job
No. 50. Job No. 50 Date Direct Materials Direct Labor Manufacturing
Overhead Beg. $ $ $ Jan. $ $ $ Cost of completed job Direct
materials $ Direct labor Manufacturing overhead Total cost $ Job
No. 51 Date Direct Materials Direct Labor Manufacturing Overhead
Jan. $ $ $ $ $ $ Cost of completed job Direct materials $ Direct
labor Manufacturing overhead Total cost $ Job No. 52 Date Direct
Materials Direct Labor Manufacturing Overhead Jan. $ $ $ Prepare
the journal entries to record the purchase of raw materials, the
factory labor costs incurred, and the manufacturing overhead costs
incurred during the month of January. (Credit account titles are
automatically indented when amount is entered. Do not indent
manually.) No. Account Titles and Explanation Debit Credit (1) (2)
(3) Prepare the journal entries to record the assignment of direct
materials, direct labor, and manufacturing overhead costs to
production. In assigning manufacturing overhead costs, use the
overhead rate calculated in (a). (Credit account titles are
automatically indented when amount is entered. Do not indent
manually.) No. Account Titles and Explanation Debit Credit (1) (2)
(3) Total the job cost sheets for any job(s) completed during the
month. Prepare the journal entry to record the completion of any
job(s) during the month. (Credit account titles are automatically
indented when amount is entered. Do not indent manually.) Account
Titles and Explanation Debit Credit Prepare the journal entries to
record the sale of any job(s) during the month. (Credit account
titles are automatically indented when amount is entered. Do not
indent manually.) No. Account Titles and Explanation Debit Credit
(1) (To record sale of jobs) (2) (To record cost of jobs) What is
the balance in the Finished Goods Inventory account at the end of
the month? What does this balance consist of? Finished Goods
Inventory $ What is the amount of over- or underapplied overhead?
Manufacturing Overhead $ Question Attempts: 0 of 15 used Save for
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ekkarill92 answered 6 months ago